KSH Holdings, Lian Beng Group and Heeton Holdings have entered deals to sell two property sites in Brisbane, Australia, citing concerns about the viability of projects, the companies said in filings to SGX Thursday.
Lot 1, is a freehold land located at 186 Wickham Street, Fortitude Valley, which is effectively owned by Heeton, Lian Beng and KSH in proportions of 55 percent, 30 percent and 15 percent, respectively, the filings said.
The second property, lot 7, located at 29 Ranwell Lane, Fortitude Valley, is owned 70 percent by Heeton and 30 percent by Lian Beng, the filing said.
Lot 1 will be sold to Australian entity W & R Property for A$12.74 million, the KSH filing said. The total consideration from W & R Property for both sites will be A$18.20 million, the filings said.
The book value of Lot 1 was A$7.25 million as of end-June, with no independent valuation performed for the transaction, the KSH filing said. The total book value of both properties was A$13.27 million as of end-June, Lian Beng said, noting no independent valuation of the property was performed for the transaction.
“The viability of the project in relation to the property has been undermined by the increasing complexities of real estate development in Australia, and in the ordinary course of trading activities,” Lian Beng said in the statement. “The decision to explore a strategic exit was approved by the stakeholders.”
Lian Beng noted the property was acquired in 2014 as part of a mixed-use development plan for residential and hotel units.
Heeton said the divestment is in line with its plans to rationalise its investment policies, streamline its portfolio and recycle capital.
Completion of the sale of lot 1 is expected in the first quarter of 2022, the filing said.
Lian Beng noted it planned to dispose of the property by 19 April 2022 to mitigate potential conflicts of interest due to an undertaking given to SLB Development.